via Axios Denver

By Alayna Alvarez | Published on December 15, 2022

There's no doubt the Denver metro's housing market is cooling, as mortgage rates that more than doubled since January have dissuaded potential homebuyers.

• The question, industry experts say, is how long the slowdown will last.

Driving the news: An Axios analysis of Zillow data found that average home prices dropped across the majority of the Mile High area between July and October.

• Homes in ZIP code 80457, which includes Morrison, saw the biggest price drop, with the average listing around $537,000 in October — 4.2% lower than three months earlier.

• In Denver County, prices fell furthest in ZIP code 80216, near Commerce City. That area saw a 3.6% decrease, averaging about $448,000 in October.

Yes, but: Despite the market cooling, metro Denver's sales prices are expected to rise between 0.4% and 4.2% next year, based on competing predictions from Zillow and Realtor.com.

Of note: Home prices in Boulder County dropped more than any other area in the state, Zillow data shows.

• ZIP code 80481 decreased 5.2%, falling from an average of about $569,000 in July to 539,000 in October.

The other side: Some ZIP codes, particularly west of Denver, saw significant jumps in average home prices between July and October, even as homebuyers struggled to balance higher interest rates.

• Statewide, ZIP code 81143 near Moffat, in southern Colorado, experienced the largest spike at 8.5% during those four months, averaging about $218,000.

The bottom line: "While we expect to see the Denver real estate market continue to change through 2023 due to interest rates and inventory woes, it continues to show strength and stability," Libby Levinson-Katz of the Denver Metro Association of Realtors wrote in a December report.

The big picture: Denver metro's home price appreciation remains up 30% since March 2020 and 151% since 2015, per DMAR's latest analysis.